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IOLCP at crucial levels! | CHART#18

IOL Chemicals & Pharmaceuticals Ltd. engages in the manufacture of organic and inorganic chemical compounds. It operates through two segments: Chemicals and Drugs. The Chemical segment produces and sells ethyl acetate, iso butyl benzene, acetyl chloride, and mono chloro acetic acid. The Drug segment offers a various active pharmaceutical ingredients such as ibuprofen, metformin, fenofi brate, and lemotrigine.

*Stock Analysis*

Stock has been flowing inside a descending channel (Yellow) after reaching its peak at 898.90 levels.
Sub channel has been formed inside this channel which is of opposite nature (Violet) with above average volume which indicates potential buyers around this region.
Sub channel lost its upward momentum on touching the main channel at 725 levels thus retracing to 600 levels and probably took support at trendline.
Volume spike is seen at 600 levels, RSI pointing upwards so we can establish 600 levels as Demand/Buying Zone.
Once its enters the channel (Violet), upward travel starts to 725 and 790 levels.
Coming to the fundamentals - IOLCP is a fundamentally strong company which has its roots in chemical industry.
It has a CAGR of 67%, ROE track record of 51.94% and its a Debt free company.
P/E ratio is nearly 8.54 which is less than Industrial average due to consistent increase in Earnings.

*Important Levels to Watch*
-- Entry @ above 670 levels on support
-- Target @ 725 | 790
-- SL @ 525

Notes :

FII has reduced the stake from 7.7% to 5.9% YoY. Major stake(50%) is with public. So stock can be affected by news based panic selling
India's specialty chemicals market to grow to $40 billion by 2025: McKinsey

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❗❗Disclosure : I am not a SEBI registered analyst. The information provided here is for education purposes only. I will not be responsible for any of your profit/loss with this suggestions. Consult your financial advisor or do your own analysis before taking any decision❗❗